Whitemail
A strategy that a takeover target uses to try and thwart an undesired takeover attempt. The target firm issues a large amount of shares at below-market prices, which the acquiring company will then have to purchase if it wishes to complete the takeover. Investopedia Says:
If the whitemail strategy is successful in discouraging the takeover, then the company can either buy back the issued shares or leave them outstanding. Related Terms:
Bankmail
Greenmail
Macaroni Defense
Takeover
Target Firm |